Automotive website Edmunds has acquired Ann Arbor-based Carcode SMS, making the mobile startup the firm's first acquisition.
Carcode SMS created a website plugin that allows consumers to text automotive dealership staff and inquire about a specific car. The software assigns local cell phone numbers to dealerships so mobile shoppers can text them and provides the dealership with an app that allows staff to respond and manage conversations in a compliant environment. Edmunds
plans to launch this technology across its dealership network, providing CarCode SMS for free to both dealers and consumers.
"More and more traffic is going through the dealerships mobile websites," says Steve Schwartz, co-founder of Carcode SMS
The Tech Brewery-based
got its starts a couple of years ago creating mobile technology for automotive dealerships that leveraged QR codes. The three-person team pivoted a year ago to focus on the text-message conversations platform. It won the 2014 Edmund Hackomotive contest
That was the first contact Carcode SMS had with Edmunds, which led to an invitation to participate in the company’s newly formed startup accelerator program last summer. It also led to a spike in the startup’s revenues thanks to dozens of new dealerships signing up for its .
"We ended up generating revenue very quickly after the hackomotive competition," Schwartz says.
It ended with the acquisition. The terms of the deal were not disclosed. Schwartz and one of the other co-founders are leaving the company while Carcode SMS' CEO takes on a role with Edmunds.
Source: Steve Schwartz, co-founder of Carcode SMS
Writer: Jon Zemke
Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.